Nike reported net income for the fiscal first quarter of $253.1 million, or 85 cents a share. In the year-ago quarter Nike earned $226.1 million, or 76 cents a share. Revenue for the quarter rose 21% to $2.77 billion from $2.28 billion a year ago.

First Call analysts projected the company's first-quarter earnings would be 84 cents a share.

Philip Knight, Nike's chairman and chief executive officer, said foreign sales would drive the company's long-term growth. Revenue generated outside the U.S. passed the $1 billion mark for the quarter for the first time, increasing 48% and only slightly behind the $1.06 billion in U.S. revenue for the quarter.

Future orders for Nike's products -- those orders scheduled for delivery between this month and January -- were 33% higher for Asia and 38% higher for the Americas, compared with 1% for the U.S.

Mr. Knight predicted that sluggish growth in sales of athletic footwear in the U.S. would help slow Nike's year-over-year revenue growth slightly below the company's predicted 15% target.

In composite trading on the New York Stock Exchange, Nike closed at $54.875 a share, gaining $2.375 a share. Nike released its earnings after trading ended.

In after-hours trading, Nike shares rose 12.5 cents to $55 a share, according to Instinet Corp.

Mr. Knight said that while the company's revenue growth is expected to trail growth of the last two years, Nike still expects strong long-term growth. In fiscal 1996 and 1997, Nike reported revenue growth of 42% and 36% respectively.

On a world-wide basis Nike's future orders increased 10% over the year-ago period to $3.9 billion.

For the first quarter, U.S. revenue rose 5% compared with revenue increases of 68% for Asia and 60% for the rest of the Americas. European revenue rose 34% for the quarter.

Analysts said Nike's first-quarter results showed a clear deceleration of the company's impressive growth rate in the last two years.

"This is the first time we've started to hear about overseas challenges for footwear in United Kingdom and Japan," said Smith Barney analyst Faye Landes.